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Chapter 21 Consumer Protection Law

Chapter 21 Consumer Protection Law. UNFAIR OR DECEPTIVE SALES PRACTICES. Federal Trade Commission Act (FTCA), one of the very first statutory protections for American consumers.

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Chapter 21 Consumer Protection Law

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  1. Chapter 21 Consumer Protection Law

  2. UNFAIR OR DECEPTIVE SALES PRACTICES • Federal Trade Commission Act (FTCA), one of the very first statutory protections for American consumers. • The FTCA established an administrative agency called the Federal Trade Commission (FTC) and charged the FTC with the broad mandate of preventing unfair and deceptive acts or practices.

  3. Telemarketing Telephone Consumer Protection Act Telemarketing/Consumer Fraud Prevention Act. • (1) allow consumers to opt out of unwanted calls from telemarketers, • (2) ban the use of unsolicited recorded calls and faxes, • (3) regulate 900 number calls, • (4) prohibit telemarketers from making false claims, • (5) require disclosure of all the material terms of offers.

  4. Regulation of Online Advertising • Assault of Non-Solicited Pornography and Marketing Act of 2003, better known as the CANSPAM Act. • Outlawed the dubious methods used by certain spam suppliers and provided for criminal sanctions in severe cases. • Prohibits online marketing providers from falsifying the “from” name and information in the subject line designed to fool consumers into opening an unsolicited e-mail.

  5. Magnuson-Moss Act • KEY POINT • The Magnuson-Moss Act does not mandate that sellers offer a warranty to a consumer/buyer, nor does it create any additional implied warranties. If the seller does offer a warranty, the transaction is subject to the provisions of the statute.

  6. Consumer Product Safety Act • The CPSC researches, institutes, and enforces safety standards for consumer products that pose a potential risk of injury. • If it determines that a product defect poses a threat to consumer safety, the manufacturer may be required to recall.

  7. FOOD AND DRUG SAFETY • The Food, Drug and Cosmetic Act (FDCA) created the U.S. Food and Drug Administration (FDA). • Regulates testing, manufacturing, and distribution of foods, medications, medical devices, and cosmetics.

  8. Consumer Credit Regulation • Consumer Credit Protection Act (CCPA). Regulates the following: • disclosure of credit terms, • credit reporting, • antidiscrimination, and • collection of debts from consumers.

  9. Truth in Lending Act • KEY POINT • The TILA covers only creditors who are regularly engaged in extending (or arranging for) an extension of credit for goods and services that is for personal, family, or household goods.

  10. Antidiscrimination • Equal Credit Opportunity Act • Denying an applicant credit based on factors relating to the applicant’s race, religion, national origin, color, gender, age, or marital status is unlawful.

  11. Credit Cards • The Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) • Increases the power and oversight authority of the Federal Trade Commission over credit card issuers. • CARD Act protects consumers from surprises when interest rates increases or credit card fees are imposed, and to restrict marketing and card-issuing practices targeted to younger (18 to 21 years of age) consumers.

  12. Credit Reports • Fair Credit Reporting Act (FCRA). • Sets privacy rights for consumer credit reports, and • Requires that the credit bureaus give individual consumers complete and timely access to their own credit reports.

  13. learning outcomes checklist • 21 - 1 Explain the role of the Federal Trade Commission in terms of various statutory consumer protections. • 21- 2 Articulate the standards used to define false advertising and other deceptive practices and identify specific consumer protection laws applied to bulk e-mail. • 21- 3 Define and give an example of a warranty.

  14. learning outcomes checklist • 21- 4 Distinguish between express warranties and implied warranties, explain the protections afforded by each type of warranty, and articulate the standards for disclaiming a warranty. • 21- 5 Name and explain the federal statutory protections afforded to consumers for faulty or unsafe products and for food and drug safety.

  15. learning outcomes checklist • 21- 6 Identify the parties in a credit transaction and understand the role of federal statutory laws in consumer credit transactions. • 21- 7 List the various components of the Truth-In-Lending Act and give specific examples of regulatory requirements. • 21- 8 Explain the protections afforded to consumers by federal statutes regulating the collection of consumer debt.

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